Monday, June 13, 2016

Second global Women in Financial Services report finds slow progress for women leaders in financial services At current progress, female representation at executive committee level set to hit 30 percent in 2048 Female executives more likely to leave their employer at mid-career in financial services than any other industry

(BUSINESS
WIRE)-- Globally, only one-fifth of boards and 16 percent of executive
committees in financial services are comprised of women, according to
the Women in Financial Services report by global management consultancy
Oliver Wyman. This is only a slight improvement in both categories since
the report was last published in 2014.

Oliver Wyman notes that
at current progress, it will take more than 30 years (until 2048) for
executive committees in the financial services industry globally to
reach 30 percent female representation (the level at which research
suggests a minority’s voice comes to be heard). Currently, women have
the highest representation on executive committees in Norway and Sweden,
with Japan and South Korea needing the greatest improvement.

The
report includes an analysis of 381 financial services organizations in
32 countries, a survey of 850 financial services professionals around
the world and interviews of more than 100 senior female and male
leaders.

“The industry is far from where it should be on gender
balance. We hope that this second report will advance the discussion
further – delving deeper into it, raising awareness and supporting much
needed change in the industry,” said Ted Moynihan, Managing Partner of
Financial Services at Oliver Wyman. “The low representation of women on
executive committees in particular is a problem. An organization’s key
business and strategic decisions are made by its executive committee and
they are also highly visible, both internally and externally, making
them effective as role models and sponsors – and essential for driving
business success.”

Of additional concern, female executives in
financial services are nearly 30 percent more likely to leave their
employer than are their peers in other industries. The data and
responses suggest that many women face a mid-career conflict and a less
attractive ‘career trade-off’ than men – with insufficient flexible
working hours and support for family responsibilities, persistent views
of shortcomings regarding promotion and equal pay, and unconscious bias.

“Diversity
must be seen as a commercial imperative rather than just as part of
corporate social responsibility or fairness in the workplace,” said
Astrid Jaekel, Oliver Wyman Partner and report author. “Gender balance
provides access to the full talent pool, better decision making by
bringing together different perspectives, improved services to customers
by better representing them, and a stronger economy. Organisations need
to advance women by offering bolder structural solutions to the
mid-career conflict outlined in this report, creating the right working
arrangements and fostering more profound cultural change.”

The report also includes a series of shorter articles on:

Areas of particular concern (Germany and Switzerland, asset management and risk functions). Success stories with more women in leadership positions (the public sector). Areas where a new dynamic may be emerging (China’s Fintech sector and millennial women in the US). Specific aspects of diversity (pay equity, leadership styles). How the industry can move forward (a call for action by 30% Club). Financial inclusion of women (based on a roundtable discussion conducted in collaboration with Women’s World Banking).